The largest economy in the world needs to coordinate efforts to establish global rules of the crypt is said Jerome Allar

CEO Circle, the cryptocurrency startup valued at $ 3 billion, said the apparent lack of rules around the world in the rapid adoption of the crypts. The entrepreneur acknowledged that FINTECH startups are working in the grey areas of the law, which leaves the investment in the billions of dollars in the space of the blockchain unprotected and unmanaged.

“Ultimately at the level of the G20 should be normalized critical associated with cryptowall regulatory issues,” said Allar.

Regulation overlay innovation

The comments come at a time when global regulators are sometimes unable to keep up with the pace of innovation fintech. Their legal framework is too old to fit into the assets that are inherently multifaceted. The U.S. Commission on securities and stock exchanges, for example, continues to consider cryptofauna securities as securities, referring to 72-year-old security act . India, meanwhile, spent two years trying to find the perfect definition to explain bitcoin and similar assets, ultimately adopting measures that seem reckless than logical.

Some regulators, however, ready to accept the first solution.

Last Friday in his report to the analytical group for financial action in Paris (FATF) revealed that by mid-2019 will be imposed the first set of rules for cryptosystems. Global control group on combating money laundering emphasized that jurisdiction in the world will have to license or regulate kryptogamen to curb money laundering and the financing of terrorism.

Allair said he supports the initiative of the FATF, but the first global regulatory project for triptanov should also adopt its proposal initial proposals of coins (or ICO). That new global rules must determine the legality and illegality of issuing tokens by a private company and as a stock exchange making manipulations in the market.

“When it comes to symbolic sentences, how should they be interpreted? What trademarks are securities and which are not? “—he said.

So far Switzerland and Japan are among the leading economies that have expressed interest in the regulation of Cryptoprotected in accordance with the rate of innovation. At the same time, the second largest economy in the world — China , who is also a member of the FATF, forbidden to disseminate it widely.

Site source:https://www.ccn.com/major-economies-should-coordinate-crypto-regulations-circle-ceo/